ILC to push for Independent Pensions Commission

ILC-UK project that despite auto-enrolment, the savings ratio is likely to continue to fall up until 2020, posing sigificant risk to long term retirement incomes.
 
With the support of Prudential, ILC-UK will work over the next month to consider whether there is a case for a second Pension Commission, and if so, what it should focus on. ILC-UK will launch a report in London on 23rd February.

In the ten years since the first Pensions Commission, significant policy changes have included auto-enrolment and introduction of NEST, changes to the state pension age and state pension entitlements, the end of default retirement age, and the introduction of legislation to facilitate CDC pension schemes.

Over the next month, ILC-UK will explore:

- The economic environment for growing personal savings in the UK
- The extent to which people are working longer
- Continuing increases in life expectancy
- Future sustainability of age-related spending by the Government
- What should a new Pensions Commission look like

Ben Franklin of ILC-UK said:

“We face a perfect storm of stagnant income growth, low investment returns and a consumption driven economic recovery. Increasing savings levels are going to be tough. Now is the time to explore whether we need a second Independent Pensions Commission to help direct Government policy for the next ten years."

Tim Fassam, Head of Public Affairs at Prudential added:

“Recent changes have expanded the number of people saving and provided a wider range of choices in retirement. While these are important improvements, most people are still not saving enough to provide the retirement they desire. Pension decisions are long-term, so stability and predictability are important in encouraging people to save more. At Prudential we believe the best way to achieve this is through consensus with savers, policymakers and industry working together.”